As anticipated, the Consumer Financial Protection Bureau's (CFPB) now Former Director Kathy Kraninger submitted her resignation letter to President Biden per his request that she step down. Kraninger posted the letter — dated January 20 and effective immediately — on her Twitter account. Kraninger expresses what she's said in many Congressional hearings throughout her tenure regarding the directorship of the Bureau, and is supported by the U.S. Supreme Court's decision in Seila— that the President should have the ability to choose who leads agencies in their administration.
In the letter, Kraninger discusses the initiatives that the CFPB undertook under her leadership. These initiatives include consumer education, regulations for clear rules of the road for financial institutions (including Regulation F, the debt collection rule), and the Bureau's oversight and enforcement work.
With Kraninger's resignation, the way is now paved for President Biden's pick — Rohit Chopra — to undergo the appointment process and take the helm of the Bureau. With a Democrat majority in Congress, Chopra will likely have little trouble getting confirmed for the role. Chopra's official comments and statements from his time at the Federal Trade Commission provide some insight into his views of the debt collection industry and market.
With a shift in leadership at the Bureau, there will likely be many changes in the next several weeks and months. The Bureau will likely be shifting back to a Cordray-esque approach. Stay tuned as we follow the changes here at iA.